Silver Prices Rebound from Sharp Losses Amid Rising Rate Hike Expectations
Silver prices have recovered from sharp losses, but remain under pressure due to changing expectations around US monetary policy.
The precious metal was trading at $57.60 per troy ounce during Asian hours after a decline of more than 4% in the previous session.
Higher oil prices linked to rising tensions in the Middle East are driving market expectations for potential Federal Reserve rate hikes, which could weigh on silver as it does not provide a yield.
Markets are currently pricing in an estimated 35.8% probability of a Federal Reserve rate hike this month and an 82.1% probability of at least a quarter-point rate hike in September, according to the CME FedWatch tool.
The rise in oil prices is tied to growing tensions in the region and has contributed to stronger expectations that the Federal Reserve could raise interest rates, adding pressure on silver.